OREANDA-NEWS. December 05, 2012. The Commission of the Office of the Federal Antimonopoly Service in the Leningrad Region (Leningrad OFAS Russia) found that “Russian Railways” OJSC violated Clause 8 Part 1 Article 10 of the Federal Law “On Protection of Competition” (creating discriminatory conditions), reported the press-centre of FAS Russia.

The case against the railway monopolist was opened upon a petition of the Leningrad Regional Construction Committee of the.

The OFAS Commission established that in May – August 2012 “Russian Railways” OJSC had applied different codes of the Classes of Transport Rates in legal relations for the three companies – producers of course porous ceramic stone (“Petrokeramika” CJSC, “Ryabovsky Ceramic Products Works” Ltd. and “Pobeda LSR” OJSC) and railway transport consignors, fixing different prices for transportation services.

For instance, referring to a Letter of the Ministry of Transport, “Russian Railways” OJSC was forcing “Petrokeramika” CJSC to transport freight under a code providing for a higher tariff. The OFAS Commission also established that during three months “Ryabovsky Ceramic Products Works” Ltd. had been transporting course porous ceramic stone under a code the Classes of Transport Rates providing for a higher tariff. At the same time the railway company did not change the code for “Pobeda LSR” OJSC.

“Once again the FAS Commission exposed non-transparent processes of interaction between the large monopolist and service consumers, in this case – freight transportation services. The situation is aggravated by the fact that monopolist’s actions also affect other regional markets; in particular, the market of production of construction materials. Under non-transparent pricing policy of the natural monopoly, producers can not only suspend business-processes but even leave the markets, which ultimately will impact the end value of the goods”, emphasized Deputy Head of Leningrad OFAS Russia, Gleb Konnov.

Reference:

Clause 8 Part 1 Article 10 of the Federal Law “On Protection of Competition” prohibits actions of an economic entity with dominant position that resulted in restricting competition or infringing the interests of other persons, particularly, creating discriminatory conditions.